ERISA litigation ends in $21.5M settlement
A ERISA lawsuit against Nortel Networks Corp., which accused the company of offering its own stock as an investment opton in an employee-benefit plan, has ended in a $21.5 million settlement.
Nortel Networks Corp., a telecommunications-equipment maker, failed to disclose the risks that came with the investment option since the company was filing for bankruptcy. The company’s stock offering was not in line with the Employee Retirement Income Security Act. Nortel has agreed to the settlement, which will erase a $100 million Chapter 11 claim if approved.
According to a U.S. Bankruptcy Court filing, the settlement will be funded by Chubb Insurance. Nortel is now readying itself for a court battle over the earnings from the sell of its businesses between the different arms of the company.
If you need assistance with an ERISA claim, contact the Indiana ERISA lawyers of the Hankey Law Office, by calling (800) 520-3633 today.